What defines an independent contractor?

An independent contractor is characterized by being hired for a specific task or project and having the autonomy to determine how that task is completed. This arrangement contrasts with traditional employment, where the employer typically exerts control over the employee's work methods and schedule. Independent contractors work under the premise that they have the freedom to apply their specialized skills as they see fit to accomplish their work objectives, which adds flexibility to both the contractor and the hiring party.

This definition highlights the critical aspect of independence which differentiates them from employees. They are not subject to the same level of oversight or management, which is a fundamental characteristic of the contractor-client relationship. The flexibility inherent in this arrangement often results in independent contractors managing multiple clients and projects simultaneously, emphasizing their role as self-directed professionals.

In contrast, the other options do not accurately reflect the definition or characteristics of independent contractors. Such misunderstandings could lead to misclassification of relationships within a business context.